Storify by Lachlan Markay

Peter Suderman drops a truth-bomb on Walmart critics

Peter Suderman @petersuderman
Really enjoyed talking Walmart and Black Friday on @upwithchris this morning. I'm going to add a few stray observations on twitter.
Sat, Nov 24 2012 06:56:18
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Peter Suderman @petersuderman
1. Walmart’s customer base is heavily concentrated in the bottom income quintile, which spends heavily on food.
Sat, Nov 24 2012 07:10:17
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Peter Suderman @petersuderman
2.The bottom income quintile spends about 25 percent of income on food compared to just 3.5 percent for the top quintile.
Sat, Nov 24 2012 07:10:44
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Peter Suderman @petersuderman
3.So the benefits of Walmart’s substantially lower prices to the lowest earning cohort are huge, especially on food.
Sat, Nov 24 2012 07:11:08
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Peter Suderman @petersuderman
4. Obama adviser Jason Furman has estimated the welfare boost of Walmart’s low food prices alone is about $50b a year.
Sat, Nov 24 2012 07:11:44
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Peter Suderman @petersuderman
5.Walmart’s wages are about average for retail. Not amazing. But not the worst either.
Sat, Nov 24 2012 07:12:12
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Peter Suderman @petersuderman
6. Paying Walmart’s workers more would mean the money has to come from somewhere. But where?
Sat, Nov 24 2012 07:12:27
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Peter Suderman @petersuderman
7. Erase the Walmart CEO's entire salary, and you can raise average hourly wages by just a penny or so.
Sat, Nov 24 2012 07:12:53
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Peter Suderman @petersuderman
8. Erase the entire Walton family fortune and you get an average $1/hour boost to Walmart workers.
Sat, Nov 24 2012 07:13:12
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Peter Suderman @petersuderman
9. Raise prices to pay for increased wages and you cut into the store’s huge low-price benefits for the poor. It’s regressive.
Sat, Nov 24 2012 07:13:23
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Peter Suderman @petersuderman
10. But what about Costco? They pay more, right? Yes, but it’s a different, smaller market.
Sat, Nov 24 2012 07:13:40
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Peter Suderman @petersuderman
11. Walmart’s average customer earns roughly $35k. Costco’s average customer earns about $75k.
Sat, Nov 24 2012 07:13:54
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Peter Suderman @petersuderman
12. Costco only has about half as many employees as Walmart. What would happen if Walmart adopted a Costco model and shrank to Costco size?
Sat, Nov 24 2012 07:14:40
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Peter Suderman @petersuderman
13. Not at all clear that the remaining half of Walmart workers would be better off. Many would almost certainly be worse off. Unemployed.
Sat, Nov 24 2012 07:15:27
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Peter Suderman @petersuderman
14. Obama econ adviser Jason Furman did a lot of the work on Walmart's progressive benefits. His case: slate.me/R3bkc2
Sat, Nov 24 2012 07:18:46
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Peter Suderman @petersuderman
15. Finally, as someone who's actually been a regular, small-town Walmart shopper, I'd like to argue for its community benefits.
Sat, Nov 24 2012 07:21:41
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Peter Suderman @petersuderman
16. Yes, some small stores close when Walmart opens. But in small towns, Walmart can become real community hubs - more so, because of size.
Sat, Nov 24 2012 07:22:44
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Peter Suderman @petersuderman
17. As for Walmart workers getting health benefits thru Medicaid, that's due in part to a policy liberals argued for: wapo.st/axXXNE
Sat, Nov 24 2012 07:29:06
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Billy-Jack O'BrienThis is a terrible argument, there are so many holes in many of his points, and a good amount of them just point out obvious facts. Also, someone please explain...This is a terrible argument, there are so many holes in many of his points, and a good amount of them just point out obvious facts. Also, someone please explain to me how if the entire Walton family fortune was erased and spread throughout Wal-Mart employees, how their wages could only increase $1/hr? There are 1.4 million Wal-Mart employees according to their website and the Waltons have a collected fortune of 93 billion. 93,000,000,000/1,400,000 = around 66,500 for each employee. that's literally 3-4 times their current income of 20-15,000 a year. the waltons collected yearly income is around 3.88 billion, because their net wealth increased from 69.7 to 93 billion in 6 years. if that were spread out to 1.4 million workers yearly they would all have around a $3000 dollar increase in their yearly paychecks. Also companies this big cant stimulate the economy because all the money travels upwards and peoples pockets are squeezed dry, all Wal-Mart has to boast about is that they squeeze pockets out slower but they make up for that with the large amount of pockets they have access to.more2013-05-13T05:00:06.194Z
Pat DowningWELL GUESS WHAT....FOOD STAMPS ARE FREE SO WHAT DO THE HOLDERS CARE ABOUT LOW PRICES? Just makin' it real. THEY call food stamps free food. Go Figger.2012-11-27T19:11:53.615Z
Jessica GalbraithMost poor people love Walmart! My entire apartment was from Walmart when I was in college!I fit weren't for Walmart, I wouldn't have had a microwave, TV etc...Most poor people love Walmart! My entire apartment was from Walmart when I was in college!I fit weren't for Walmart, I wouldn't have had a microwave, TV etc. I just couldn't afford it!more2012-11-27T06:13:49.160Z
Travis Schlegel17. Yes, liberals argued for everyone to receive adequate healthcare. Personally I would rather walmart pay for their own employees healthcare rather than...17. Yes, liberals argued for everyone to receive adequate healthcare. Personally I would rather walmart pay for their own employees healthcare rather than forcing the American taxpayers to do so. The only reason poor people spend a higher percentage of their income on food is because, rich or poor, you HAVE to buy food! All things being equal, a rich person and a poor person will eat the same amount. Poor people wouldn't spend 25% of their income on food if they were paid better.more2012-11-27T03:01:39.442Z
New Class TraitorIf liberals were interested in actually doing good rather than ffeeling good about themselves they'd realize that Walmart-bashing is barking up the wrong tree.2012-11-26T20:18:50.404Z
Rose HabibComparing Costco to Sams Club would be more appropriate. What do you say to the study which claimed that if each Walmart customer paid $100 more per visit the...Comparing Costco to Sams Club would be more appropriate. What do you say to the study which claimed that if each Walmart customer paid $100 more per visit the wages of personnel could be raised to 'living wages'. Just because oligarchy has built a semi-functional sub-poverty system for the rest of us doesn't mean it's the ONLY system OR that it's okay.more2012-11-26T19:26:34.266Z
RelyLocalVictorvilleUgh, this looks at a very limited aspect of Walmart - multiple studies have shown that small businesses keep money in the local economy three times longer, not...Ugh, this looks at a very limited aspect of Walmart - multiple studies have shown that small businesses keep money in the local economy three times longer, not just through taxes and wages, but through working with other local businesses, reinvestment in local infrastructure, donations to local charities, and more. Although the food aspect might not be as relevant, and WalMart certainly isn't the only one doing this, but the way in which products are manufactured to their cheap standards necessitates shipping jobs overseas. It is a negative spiral - ship the job away, so I have no job, so I need more welfare, so I need cheaper products, so more jobs are shipped away. We as consumers are screwing ourselves and we don't even know it. The government can't 'fix' it - we have to vote with our dollars, whether those are 35k dollars a year, or 75k dollars a year.more2012-11-26T17:51:30.498Z
Jeremy KolassaDAAAAAAMMMMNNNNNN.2012-11-26T17:37:09.619Z
SpanOwsTruth hurts. Good story!2012-11-25T20:51:40.817Z

Billy-Jack O'BrienThis is a terrible argument, there are so many holes in many of his points, and a good amount of them just point out obvious facts. Also, someone please explain...This is a terrible argument, there are so many holes in many of his points, and a good amount of them just point out obvious facts. Also, someone please explain to me how if the entire Walton family fortune was erased and spread throughout Wal-Mart employees, how their wages could only increase $1/hr? There are 1.4 million Wal-Mart employees according to their website and the Waltons have a collected fortune of 93 billion. 93,000,000,000/1,400,000 = around 66,500 for each employee. that's literally 3-4 times their current income of 20-15,000 a year. the waltons collected yearly income is around 3.88 billion, because their net wealth increased from 69.7 to 93 billion in 6 years. if that were spread out to 1.4 million workers yearly they would all have around a $3000 dollar increase in their yearly paychecks. Also companies this big cant stimulate the economy because all the money travels upwards and peoples pockets are squeezed dry, all Wal-Mart has to boast about is that they squeeze pockets out slower but they make up for that with the large amount of pockets they have access to.more2013-05-13T05:00:06.194Z
Pat DowningWELL GUESS WHAT....FOOD STAMPS ARE FREE SO WHAT DO THE HOLDERS CARE ABOUT LOW PRICES? Just makin' it real. THEY call food stamps free food. Go Figger.2012-11-27T19:11:53.615Z
Jessica GalbraithMost poor people love Walmart! My entire apartment was from Walmart when I was in college!I fit weren't for Walmart, I wouldn't have had a microwave, TV etc...Most poor people love Walmart! My entire apartment was from Walmart when I was in college!I fit weren't for Walmart, I wouldn't have had a microwave, TV etc. I just couldn't afford it!more2012-11-27T06:13:49.160Z
Travis Schlegel17. Yes, liberals argued for everyone to receive adequate healthcare. Personally I would rather walmart pay for their own employees healthcare rather than...17. Yes, liberals argued for everyone to receive adequate healthcare. Personally I would rather walmart pay for their own employees healthcare rather than forcing the American taxpayers to do so. The only reason poor people spend a higher percentage of their income on food is because, rich or poor, you HAVE to buy food! All things being equal, a rich person and a poor person will eat the same amount. Poor people wouldn't spend 25% of their income on food if they were paid better.more2012-11-27T03:01:39.442Z
New Class TraitorIf liberals were interested in actually doing good rather than ffeeling good about themselves they'd realize that Walmart-bashing is barking up the wrong tree.2012-11-26T20:18:50.404Z
Rose HabibComparing Costco to Sams Club would be more appropriate. What do you say to the study which claimed that if each Walmart customer paid $100 more per visit the...Comparing Costco to Sams Club would be more appropriate. What do you say to the study which claimed that if each Walmart customer paid $100 more per visit the wages of personnel could be raised to 'living wages'. Just because oligarchy has built a semi-functional sub-poverty system for the rest of us doesn't mean it's the ONLY system OR that it's okay.more2012-11-26T19:26:34.266Z
RelyLocalVictorvilleUgh, this looks at a very limited aspect of Walmart - multiple studies have shown that small businesses keep money in the local economy three times longer, not...Ugh, this looks at a very limited aspect of Walmart - multiple studies have shown that small businesses keep money in the local economy three times longer, not just through taxes and wages, but through working with other local businesses, reinvestment in local infrastructure, donations to local charities, and more. Although the food aspect might not be as relevant, and WalMart certainly isn't the only one doing this, but the way in which products are manufactured to their cheap standards necessitates shipping jobs overseas. It is a negative spiral - ship the job away, so I have no job, so I need more welfare, so I need cheaper products, so more jobs are shipped away. We as consumers are screwing ourselves and we don't even know it. The government can't 'fix' it - we have to vote with our dollars, whether those are 35k dollars a year, or 75k dollars a year.more2012-11-26T17:51:30.498Z
Jeremy KolassaDAAAAAAMMMMNNNNNN.2012-11-26T17:37:09.619Z
SpanOwsTruth hurts. Good story!2012-11-25T20:51:40.817Z